Gulf insider July 2015

The multi-award winning Arabian magazine

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Issue 126

BAHRAIN LEGAL 2015: Legal firms advise on regulatory challenges faced by businesses

Red Tape Blues

Is Red Tape Holding Back Bahrain?

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Contents

WORK

July 2015

Bureaucracy

RED TAPE BLUES Law

51

-

BAHRAIN LEGAL 2015

Property

UAE PREPRARED FOR CORRECTION? Affairs

Israel and Lebanon

56

14 Cover Story

Red Tape Blues

54

PLAY

14 36 19 38

Travel

28 40

Profile

30 50

Motors

10 BEST AIRLINES IN THE WORLD Life

FASIONISTAS OF TEHRAN

SUHAIL ALGOSAIBI

ASTON MARTIN FOR THE WATER

52

Style

54

Art

THE APPLE WATCH

BAHRAIN’S PHOTO HISTORY

The Arabian Review

Comment...

Publisher & Editor in Chief - Nicholas Cooksey Editorial - Agnieszka Piechoska

These are the start of interesting times…

There are huge trends shaping both the present and the future. The dominant superpower in the world is changing. Debilitated by an untenable debt position that the government itself estimates at nearly $60 TRILLION. The US is rapidly losing its economic superpower status.

Moreover, the US dollar-denominated global financial system is changing. Led by China, the rest of the world is quickly lining up to back a new system that takes the power away from the United States.

And given the massive impact of the digital age, even the way that we organize ourselves as a society is changing. We can develop meaningful relationships with people on the other side of the planet, and stay closely in touch with friends and family who live far away in a way unimaginable a generation ago.

This isn’t the first time the world has seen major changes. History is generous with examples of once great empires that have fallen... reserve currencies that have been abandoned... and radical changes in the way that societies are organized.

History also shows that few people fully appreciate the immensity of the changes at they happen, particularly when they begin. Last month’s Gulf Insider comment was about how the banking industry will have to change beyond recognition over the next few years if it is to survive. Technological innovations threaten traditional banking, which has not changed its business model in many decades, like never before. Yet many in the industry still seem blissfully unaware of the changes coming.

Most people get their bearings from looking back to the past. Only a small and very smart minority combine an ability to look back with recognizing trends shaping the future.

WORK WORK

Photography - Harold Tejada - Bench Medina Distribution Executives - Mohammed Yousif - Muhammed Shareef P - Rafnaj K P

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Media P.O. Box 60357, Kingdom of Bahrain Tel: +973 1700 4575 Fax: +973 1772 1722

Printed at Awal Press, Kingdom of Bahrain.

for WORK see page 08

The Arabian Review

Issue 126

Issue 126

Also inside:

Travel Insider - 10 Best Airlines Car Insider - Qatari Supercars Art - Bahrain’s Photo History

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We ask Four business leaders: Mona Almoayed Mohammed Dadabhai Suhail Algosaibi Hamed Fakhro

Is Red Tape Holding Back Bahrain?

Arabia’s most intelligent magazine Established since 2004, Gulf Insider is the multi award winning Arabian business and current affairs magazine that also covers property and expat news, interviews, car reviews, travel features, even a bit of art and fashion.

The monthly print edition of Gulf Insider is distributed to Bahrain’s highest spending consumers and decision makers. There’s also limited distribution in other GCC states via airline lounges, duty free, ARAMCO in the KSA, and other strategic locations.

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Kudos on the June cover, GI! Simple and yet eye-catching, it makes a perfect introduction to what’s inside. – Jake

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Property

Business

Bahraini buyers on European market

Exclusive interview: 8 of the best SUVs in Bahrain Greg Pirkle

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I hold GI’s car reviews in high regard, and your June feature on the best SUVs on the island couldn’t have come at a better time for me. I was just trying to figure out which model to go for, and now that I saw your recommendations, I think I’ve made my pick. – Omar

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First, the “You” issue and now, the “Art of Leadership” – I enjoyed both of your last special features. I believe that one of the most important aspects of reading is inspiration, and these two features were packed with inspirational content!

– Amina

Wrong Kind of Attention The story of Dareen who was attacked with a knife in broad daylight and full view of indifferent onlookers, somewhere in a busy city of Jeddah, shows us how many things are wrong with people. But, it also shows how so called ‘diffusion of responsibility’ is still a thing in a modern and (I’d like to believe) evolved society.

It basically means that people, when in a group, tend to assume that others are responsible for taking action, so eventually no one does anything. It’s a well-known sociopsychological phenomenon, and I think this is what happened in Jeddah – until that one passer-by finally did the right thing. How else can we explain the terrifying apathy of all those who watched the girl fight a lonely fight for her life and not lend a helping hand? – Gina

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News

GULF ROUNDUP news around the GCC and beyond

business & Affairs

Dubai among Worst Performing Property Markets in Q1 2015 Dubai’s real estate market was one of the worst performing in the world during the first three months of this year with house prices down by nearly four per cent, according to a new report.

Knight Frank’s Global House Price index ranked Dubai 53rd out of 56 property markets analysed for annual price growth.

Only Ukraine, Cyprus, and China performed worse for annual price growth, falling 15.5 per cent, 8.2 per cent, and 6.4 per cent respectively compared to Dubai’s slump of 6.1 per cent.

However, the data also showed that in the last three months, only Ukraine saw steeper price falls, with a similar picture emerging for the last six months, during which prices fell in Dubai by 4.6 per cent.

The real estate sector in Dubai has been among the most volatile globally over the past decade, swinging from boom to bust to boom again. – SAUDI GAZETTE

Bahrain World’s Second for Millionaires Bahrain has the world’s second-highest density of millionaires with 123 out of every 1,000 households holding private wealth greater than $1 million, according to a new report.

The Boston Consulting Group (BCG)’s “Global Wealth 2015: Winning the Growth Game” found that the highest density of millionaires in the world was in Switzerland, followed by Bahrain and Qatar.

In 2013, Bahrain ranked sixth in the world by proportion of millionaire households, with 5.9 per cent – 59 out of every 1,000 households – holding private wealth of at least USD 1 million.

Private wealth in Bahrain grew by 5.4 per cent last year, driven mainly by equities and bonds.

Between 2013 and last year, the amount of wealth held in equities and bonds rose by 8.1 per cent and 6.4 per cent, respectively, compared with 3.1 per cent for cash and deposits, the report found. – GULF DAILY NEWS

8

Gulf Insider July 2015

Tamkeen Teams with Citibank Bahrain to Employ Bahrainis Tamkeen signed an agreement with Citibank Bahrain last month, to recruit and train at least 70 Bahraini university graduates, as part of its Employment Support programme.

Commenting on the agreement, Tamkeen Vice President for Human Capital Development Amal Al-Kooheji stated, “By engaging directly with companies, we can offer bespoke solutions with tangible value to our customers.” Citibank Bahrain HR Head Nacira Ferdjoukh added, “Our long term vision is to groom talented Bahraini nationals with strong educational background, by offering growth in their professional sphere.” To date, the Employment Support programme enabled the recruitment and training of 7,800 Bahrainis in a range of sectors.

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News

UAE Authorities Mull Changes to Banking Law Authorities in the United Arab Emirates are discussing changes to the country’s banking law which would give the Gulf Arab state’s central bank a role in determining monetary policy, the central bank governor told Reuters.

Existing law grants the central bank control over interest rates, but this is negated by the fact the UAE dirham is pegged to the dollar and so rate movements mimic policy in the United States.

The UAE is currently overhauling its banking law dating back to 1980, and while he wouldn’t be drawn on details in his rare comments, the governor hinted at a greater role for his agency in directing UAE policy.

“The law aims to empower the central bank board in determining the direction of monetary policy in consistency with the requirements for the national economy,” Mubarak Rashid al-Mansouri said in an emailed response to questions from Reuters.

Currently, most policy decisions are made by the government, with ultimate signoff needed from the president, Sheikh Khalifa bin Zayed al-Nahayan.

However, international bodies such as the IMF have recommended independence for the central bank, while upcoming changes stemming from Basel III rules are also forcing regulators to examine existing structures and practices.

While the planned changes would give the UAE central bank a greater degree of independence, core strategic decisions would likely remain in the hands of the government, an executive at an Abu Dhabi bank said, declining to be identified due to the sensitivity of the matter. – ARABIAN BUSINESS

Disciplinary Action against 400 Bahrain Gov’t Staff Disciplinary action has been taken against around 400 government employees, including top officials, for violating administrative regulations.

Thirty-eight civil servants were sacked between January and December last year pending criminal proceedings, while 153 workers were suspended. Forty others received verbal warnings and 152 were issued written warnings. The figures were released in the Civil Service Bureau (CSB) annual report for 2014, which revealed the maximum punishments were taken against the Education Ministry with 125 suspensions and 29 dismissals.

The CSB in its report pledged to come up with “radical solutions” to address shortcomings facing government ministries and bodies, including lack of training programmes for public sector workers. – GULF DAILY NEWS 10

Gulf Insider July 2015

Qatar’s Sovereign Wealth Fund to Restructure, Say Sources Qatar Investment Authority will set asset allocation targets for the first time and restructure internal decision-making, sources say, in response to a drop in oil prices.

In a cryptic reference on QIA’s website, a tab saying ‘QIA Review Coming Soon’ leads to a page which does not yet exist. The sources, who all either work in Qatar or for foreign institutions which work with the QIA, said the review process was currently ongoing. They spoke on condition of anonymity. A spokesman for the QIA declined to comment.

The review would enshrine formal asset allocation targets for geographies and sectors for the first time, ending the scattergun approach that marked the fund’s early years as it prioritised fast growth. Setting targets now could result in the fund exiting areas like food and mining where it overlaps with specialist funds. QIA is already evaluating its investments in some mining assets, sources told Reuters last week.

The review could also see tens of billions of dollars flow into new geographies to diversify a fund, which in late-2013 was believed to be around 80 per cent invested in European assets.

The other major shift expected to emerge is a greater use of consensus in decision-making. – ARABIAN BUSINESS

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News

InterContinental Regency Bahrain and Crowne Plaza Bahrain Launch IHG Business Rewards

InterContinental Regency Bahrain and Crowne Plaza Bahrain announced last month the launch of IHG Business Rewards – the new global business bookings programme offering rewards on all qualified business bookings for guest rooms, meetings, and all events, made at over 4,800 IHG hotels worldwide. The launch took place during an exclusive event at Elements Pool and Lounge at InterContinental Regency Hotel, with invited corporate guests and hotel partners.

Enterprises in Middle East Not Ready for Digital Future

Some 62 per cent of respondents in the Middle East agree that rapid adoption of third platform technologies is changing customer behaviour and creating a new digital world, and 40 per cent admit to not knowing how to get value from their data, EMC said in its new research study “The Information Generation: Transforming the Future” that explores the impact of a growing global community of digital citizens.

Some 56 per cent of respondents agree that valuable insights from information are making organisations rethink how they do business.

Based on input from 3,600 Director-to-C-Suite business leaders across 18 countries, including the UAE and Saudi Arabia, 40 per cent of respondents believe that the current organisation culture inhibits the ability to effectively use data and information, 36 per cent stated security concerns as being a primary cause, 34 per cent attributed resources and workload constraints as key factor, and 31 per cent pointed to the lack of in house expertise as hindering the effective use of data.

By 2020, more than seven billion people on at least 30 billion devices will have created 44 zettabytes of data (or 44 trillion gigabytes), according to Gartner and IDC respectively.

– SAUDI GAZETTE

Abu Dhabi Introduces New Law to Protect Property Buyers Abu Dhabi’s ruler has issued a decree to regulate and improve transparency in the emirate’s real estate sector, requiring brokers and developers to be licensed and introducing rules to protect buyers of projects that are not yet completed.

Sheikh Khalifa bin Zayed al-Nahyan, who is also president of the United Arab Emirates (UAE), said Abu Dhabi would bring in rules governing property advertising and marketing and a means for complaints to be submitted and resolved, according to a statement on official news agency WAM. According to the decree, all real estate developments must be registered with the government along with sales 12

Gulf Insider July 2015

transactions listing the buyer, although it did not specify when the new rules would come into force. Developments cannot be promoted or sold until they receive government approval, it said.

For unfinished projects, payments by

buyers will be held in a separate, ringfenced account, while brokers will not be allowed to represent more than one party in a single transaction. – ARABIAN BUSINESS

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13

Special Feature

Red Tape Blues Is Bahrain’s entrepreneurial spirit held captive by bureaucracy?

We ask the leading business people about their first-hand experiences.

Mona Almoayyed Managing Director, Y.K Almoayyed and Sons

Mohammed Dadabhai Chairman, Dadabhai Group

Suhail Algosaibi

Founder, Falak Enterprises and Ghazi Algosaibi Holding

Hamed Fakhro Vice Chairman, BCCI Entrepreneurs Committee

Is there too much red tape in Bahrain?

Mohammed Dadabhai [MD]: In

any system in the world, there will be red tape to some degree. That refers to Bahrain as well. But, many changes are being done for the better.

Hamed Fakhro [HF]: Compared to the West, we have less red tape, 14

Gulf Insider July 2015

but I think it’s the delay in bureaucratic issues and lack of clarity of procedures that sometimes frustrate investors and new companies here. We are forced to carry our own paperwork, bouncing from ministry to ministry, to municipality for approvals that in the end take a few seconds. It should be consolidated under one roof. Just like, for example, the Ministry of Industry and Commerce (MOIC), which has representatives from

both the Municipality and the Electricity and Water Authority (EWA) under its direct supervision at the Bahrain Investors Centre (BIC).

Mona

Almoayyed

[MA]:

Unfortunately, the private sector does not get enough support from the public sector – with that infamous “The answer is no, what was the question?” attitude.

Special Feature

Suhail Algosaibi [SA]: Without

a doubt! I have not met a single person – business person or otherwise – who has good things to say about the bureaucratic processes we have in Bahrain.

Which policies in particular should be revised?

[HF]: I think a major obstacle in itself is the fact that the Municipality, EWA, the Ministry of Health (MOH), Ministry of Education (MOE), and some other institutions are all involved in company registration approval processes. Each of them has its own politics, opinions, and priorities. As business people, our goals are to grow the economy, increase efficiency, and attract investment, which all revolve around speed and quality of service. If we can find a way to make these two aspects a high priority when it comes to government institutions, we might be getting somewhere.

[SA]: There are way too many complications, even before you start a business. For example, if you work in the health, fitness, or wellness field, you require quite a few approvals. For MOIC to issue the commercial registration (CR), first you need to get authorisations from MOH, the Ministry of Interior (MOI), the Youth and Sport Affairs Ministry, and the Municipality. Each of these approvals takes at least a week, sometimes several weeks! It has happened more than once that I had to wait close to a year to get a CR issued. Of course, this does not happen all the time, but there is just too much uncertainty.

[MA]: Also, if you want to add a new

activity to your running business, which used to be a simple procedure in the past, it is now very complicated, because you are required to change your article of association and obtain the confirmation from the notary office. There are plenty of other roadblocks investors are currently facing. If you buy a property in Bahrain, you might have to wait for your title deed for months if not years. If you

need electricity connection for your new property, you have to get the approval of the Municipality, and in many cases, it takes up to eight months to one year of insistent follow-ups. Then, there are issues that particularly affect startups.

Your CR application can be rejected for reasons that are not in your hands. I know a case where a young Bahraini wanted to start a personal training fitness centre, but the ministry rejected his application, because his business concept did not fall exactly under any of the ministryspecified categories. In another case,

months, and I’m sure other ministries are working on similar changes as well.

They all need to make it their priority to help our economy grow, and I leave it to the people directly involved to decide what exactly needs to be done.

“What’s really important is that our leadership has a very clear vision for the country’s economic development, and tackling red tape is definitely on their agenda. The changes might be a bit slow, but we’re going in the right direction.”

[SA]: The issue is that the front-line government employee is often not aware of the reforms, nor is he retrained.

Moreover, they are not penalised or rewarded based on how well they treat their customers. To give credit where credit is due, though, the Government is working hard on reform on several fronts.

- Mohammed Dadabhai a gifted young Bahraini wanted to start her cooking business, but was so discouraged by all that red tape that she decided to move her business to Dubai, where the procedures for startups are less complex.

[MD]: I would like to see the Municipality

step it up a notch and make things easier for new projects on the island. I must admit, however, that they have made significant improvements in the recent

How is the problem being addressed by the Government?

[MA]: I’m afraid there is still much to

be done. It is actually getting worse, and businesses continue to face the problem of dealing with public sector employees, who are unhelpful and incompetent.

[MD]: The red tape cannot be totally

eliminated, but we have been witnessing some positive amendments in the recent years, both on the regulatory level and in the individual attitudes. More and more people within the system start to realise that less red tape means better economy. The young generation is entering government positions now, with new ideas, and I can see that they are trying to address these issues. What’s really important is that our leadership has a very clear vision for the country’s economic development, and tackling red tape is definitely on their agenda. The changes might be a bit slow, but we’re going in the right direction.

[HF]: Absolutely! MOIC is taking huge strides to rectify the problem, and we will see huge improvements soon. They have already launched their Business Licensing Integrated System (BLIS), whereby you can complete your company registration online and entirely paperless.

Minister of Industry and Commerce Zayed Alzayani is very forward thinking and has taken serious tangible steps to make sure many obstacles are removed, so that you can do away with “wasta” (Arabic for “nepotism” – Ed) in certain Gulf Insider July 2015

15

Special Feature

areas. The ministry is also in the final stages of allowing companies to operate without physical office address and even granting virtual CRs! I’m excited to see how the market will change once this happens.

charge and make their own decisions without consulting their superiors, which – again – delays the process. To see the change, those within the system need to focus on the overall agenda that is to improve our economy; we need a positive shift in attitude.

How else can the red tape be tackled?

[MA]: The staff working at all the

[MD]: Generally speaking, red tape

means unnecessary delays that ultimately harm businesses. Here in Bahrain, it is mostly caused by somewhat misguided distribution of responsibilities among the front-line government staff.

As a result, they often hesitate to take

16

Gulf Insider July 2015

ministries should be evaluated at the end of each year and rewarded if they satisfied their customers. Unfortunately, there is no performance management system currently in place in the government institutions, as opposed to the private sector.

[HF]: The ministries should be able to immediately dismiss their Bahraini staff

Special Feature

if they aren’t doing their job well. I think the days of sipping tea and not caring about applicants should come to an end.

If the employee isn’t doing their job, then there are tens or hundreds of others who actually need work and could do it better. Bahrainisation should be based on quality, not nationality only. We need competent people everywhere.

[SA]: Yes, the front-line staff in the various government departments needs to be retrained and incentivised.

I hate to be one of those who always negatively compare Bahrain to Dubai, but I heard that in Dubai, the employee behind the counter has a deadline to

process a request or application. If he misses the deadline, an alert shows up in the system. We in Bahrain get envious when we hear stories of how easy it is to obtain CRs in Dubai – often in just 24 hours. Of course, Dubai is by no means perfect, and I would not like to live there, but they are very much ahead of us, and I do wish the bureaucracy here was reduced.

“The ministries should be able to immediately dismiss their Bahraini staff if they aren’t doing their job well.

I think the days of sipping tea and not caring about applicants should come to an end.”

- Hamed Fakhro

What would be the benefits to Bahrain from less red tape?

[MA]: The key benefit of less red tape

is the prosperity of the economy and better standard of living for our citizens.

The law should be able to keep up with the new trends and not be set in stone.

[MD]: Yes, having an up-to-date legal

system in place is essential. I believe that in the next three to five years, we will see lots of positive changes. Seeing the improvements will help restore optimism among the business people, helping them deal with the current challenges. In Dubai, they had realised that smooth government procedures were beneficial to the economy, and that’s why they have streamlined the processes. Reducing red tape brings economical results, with benefits for all – not just the business owners, but all the stakeholders, including government and financial institutions, and the workforce in general.

[SA]: It would save a lot of time and

money, which can help the economy and make Bahrain more attractive to foreign investors. Imagine that a business has hired people and fitted out a location, but cannot begin operations until it gets all the approvals. This means the business owner has to pay rent and salaries without any revenue. It’s a huge burden.

Now, multiply that situation by hundreds of cases or perhaps even thousands.

Cutting red tape would mean millions of extra dinars in the economy and higher employment rates as well.

[HF]: The benefits are very clear. We need to become a stronger, servicebased economy, since we cannot rely on oil forever. If we are efficient and truly business-friendly, we can attract more foreign investment, which in turn creates more jobs and opportunities for Bahrain.

The only way forward is efficiency and transparency, and this issue is being taken very seriously by our Government..

Gulf Insider July 2015

17

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Gulf Insider July 2015

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In the second edition of Gulf Insider’s Bahrain Legal Special Feature, senior partners of some of Bahrain’s leading legal firms share their advice on various regulatory challenges faced by businesses in the kingdom.

What’s inside • Almoayed Chambers: Beware of ‘Private Offerings’ • Charles Russell Speechlys: A Word on Dispute Resolution • Al Jabal Consultancy: Legal Made Simple • Zu’bi & Partners: Fine-tuning the Property Law

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Bahrain Legal

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Bahrain Legal

Better Safe than Sorry Beware of ‘Private Offerings’ Jaideep Kharub, Director, General Consultancy Services at Almoayed Chambers

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What It Is About ‘Private offerings’ or ‘placements’ refer to one of the customary routes to raise capital, either in equity or for a project envisaged by its issuer. The process requires the issuer to prepare necessary legal documentation, known as Private Placement Memorandum (PPM), and obtain necessary approval (if required), prior to contacting the potential investors. PPM is a systematic but complex business plan prepared specifically for a limited number of investors explaining several subjects, such as the investment structure, utilisation of funds, exit policy, potential risks of investment, et cetera.

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Trouble in Bahrain In Bahrain, private placements are governed by the Central Bank of Bahrain (CBB) law and relevant regulations issued by the CBB (specifically, OFS Module of CBB Rulebook Volume 6). No person is allowed to issue any security in Bahrain unless approved by the CBB (Article 81 of the CBB law) and therefore, each private placement requires the CBB approval, unless exempted.

Bahrain market has been flooded with private placements in the last decade and subsequently, the residents had invested in a number of megaprojects. While those private placement documents bear fancy looks to attract potential investors, what is both interesting and alarming is that many of them were issued and circulated without a formal approval from the CBB. In addition, PPM documentation of such offerings lacked in several respects. For example, one PPM of a megaproject in Bahrain states that “the private placements are not aimed to be distributed to Bahraini residents,” but the issuer (an investment bank) actively solicited investments to Bahraini residents, violating the fundamental terms of their PPM and the law. As a result, several investors were forced to pursue legal action against issuers, so that the courts of Bahrain could declare such PPMs as invalid due to non-compliance with the CBB law and/ or regulations.

Points to Keep an Eye On 

CBB Approval

All private placements require approval of the CBB unless such offerings are expressly exempted under the CBB regulations. It is wrong to think that such placements are just private, and it can be offered privately without complying with the CBB law and regulations of Bahrain. 

Accredited Investors

Private placement solicitation can only be made to accredited investors, and it must not be offered to public. The CBB Rulebook defines an accredited investor as “an individual who has a net worth of

minimum USD 1 million excluding that person’s principal place of residence; legal entity which has assets available for investment above USD 1 million; or governmental organisation whose main activity is to invest in financial instruments.” The CBB regulations are very strict on it, and they require that placement subscription form must include an accredited investor status confirmation to be signed by the investor.

Further, solicitation of approved PPM (for offerings excluding private equity) can only be made to a limited number (less than 100) of accredited investors (OFS2.4.2).

period of six months from the date of CBB approval, and no solicitation can be made after lapse of the said six month period unless approved by the CBB (OFS-5.1.21).

Private placement solicitation can only be made to accredited investors, and it must not be offered to public.

One has to be very careful in complying with the nitty-gritty requirements (refer to Chapter 5 of OFS Module and Appendix OFS-7 Prospectus Checklist), such as the exact wordings to be used on the front page of PPM, inside cover page, contents of prospectus, et cetera. PPM document must be very specific and should not contain any untrue or misleading statements to attract investors. PPM document must contain a specific statement in respect of suitability of investors and ensure to include statements covering the risk of investment. The private placement fees or any other fees or charges related to the offer must be clearly disclosed in PPM. In all, PPM document must contain all information that should be sufficient to make an informed decision by an accredited investor.

The above requirements are not exhaustive, and it is recommended that the readers should consult a legal expert to understand complexities of private placements in Bahrain before considering their investment options.

Minimum Subscription Amount and Utilisation of Proceeds



Minimum subscription amount for a private placement may not be less than USD 100,000. Further, it is a fundamental requirement that all funds/investments collected through private offerings must be utilised as prescribed in PPM. 



Confidential Disclosure

Private placements must remain confidential in nature, and solicitation to accredited investors must be made in private. It is prohibited to advertise or distribute PPM openly, either through website or any other communication channel. 

Duration of Solicitation

An approved PPM is valid only for a

PPM Requirements

About Almoayed Chambers Headed by Aymen Almoayed since 2010, Almoayed Chambers is a regional legal and strategy firm based in Bahrain with affiliates and offshoots throughout the GCC. They specialise in international law disciplines and complex legal issues, mostly dealing with high net worth clients.

Specialising in:

Dispute Resolution Corporate Services  Strategy  

Contact: Tel: +973 17100000 Email: info@almoayedchambers.com

Gulf Insider July 2015

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Bahrain Legal

Different Cultures, Common Ground A Word on Dispute Resolution Who are your clients?

We act for a whole range of clients from government entities, industry regulators, and large corporations to family businesses and private individuals.

What are the most common legal issues that they are facing?

Patrick Gearon, Head of Charles Russell Speechlys’ Middle East offices

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Gulf Insider July 2015

Majority of them relate to either corporate or commercial advice or transactions, regulatory matters, the acquisition, sale or development of land, or the resolution of disputes. The most common form of legal dispute is a result of breaches of contracts. Such disputes can arise in a number of ways, from misunderstandings as to what contractual obligations actually mean to outright deliberate breaches in an attempt

to obtain a commercial advantage. The disputes with which we often deal relate to contracts between businesses based in Bahrain and businesses outside the Gulf region.

Why do breaches of contract happen so often?

In many cases, it is simply caused by a disconnection between the parties at the outset of the relationship as to precisely what each side of the contract was supposed to perform. This is why it is important that contracts are clear and articulate precisely what each party is expected to do, and when. Disputes can also arise due to misconceptions on the part of foreign companies’ about local commercial culture. In general, understanding, patience, and a good sense of humour are key to developing

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a flourishing partnership in the Gulf region. Sometimes just being clear is not enough – trust takes time to build and is the cornerstone of any successful business relationship in this region.

What are the legal options to resolve disagreement?

One of the most popular options is arbitration. It’s a private process where both parties of the dispute agree to follow a specific set of arbitration rules – for instance, London Court of International Arbitration (LCIA) rules or

throughout the GCC region, under the Riyadh Convention. Another choice for litigation in the kingdom is Bahrain Chamber for Dispute Resolution (BCDR). Again, it is a highly regarded, well organised, and efficient system.

However the BCDR will only accept cases if certain conditions are met and, generally, it only deals with substantial monetary claims or those involving an international aspect. One aspect of the BCDR of which clients need to be aware is the fees that the BCDR charges, which, in basic terms, is two per cent of the amount you claim. So, obviously, if

between the parties can be settled.

With all that said – ideally, you want to avoid all of these procedures, because none of them are without cost, both in terms of time and money.

So, how can this be prevented?

We recommend that you undertake thorough research before entering into any commercial and legally binding arrangement. This way, you can make sure you end up with the right contractual partner and a contract that both parties are happy with, and know they can perform. When drafting a contract, you

When drafting a contract, you should always consider all the things that could go wrong rather than all the things that you hope will go right International Chamber of Commerce (ICC) rules. Arbitration is a popular dispute resolution option, because it is confidential and usually a quicker process than the other alternatives. In addition, under the New York Convention, all arbitral awards from any GCC state are enforceable throughout the whole region and in every signatory state in the world.

For these reasons, we recommend that our corporate clients include arbitration clause in their contracts.

An alternative option is litigation, which is basically a lawsuit brought in court. In Bahrain, there are two main litigation forums – one is the High Court system, which is highly respected not least because of the high quality of its judges. But, it can be a time consuming and expensive process. One advantage of using the High Court system is that the final ruling will be enforceable

you are claiming many millions of dinars, you have to be conscious of the amount the BCDR fee is going to be.

The third option of dispute resolution is mediation, which is where the parties involved agree that an independent third party will facilitate them in reaching a resolution to their dispute. The mediator will not judge; their job is to create the environment where the differences

should always consider all the things that could go wrong rather than all the things that you hope will go right and raft into the contract’s mechanisms when things do go wrong. Businesses often seem to pay most attention to completion of the project, sometimes ignoring the potential pitfalls that can arise on the way to completion.

About Charles Russell Speechlys “As one of the largest international law firms in Bahrain, and indeed the Gulf region, we are very optimistic and look forward to the exciting year ahead. We’ve recently merged with Speechly Bircham, and today, we have 170 partners and over 500 lawyers operating in ten significant wealth and business centres across the UK, Europe, and the Gulf. We employ the highest number of Bahraini lawyers – with plans to grow these numbers even further.”

Gulf Insider July 2015

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Special Feature

Bahrain Legal

Legal Made Simple THE FREE MARKET Approach Interest Rates in Commercial Transactions null and invalid. On the other hand, the legislator has allowed parties’ agreement on interest in the commercial transactions almost without any restriction, and it goes further than this by assuming the parties’ agreement on interest in commercial loans unless they

Ali Al Jabal, Managing Partner at Al Jabal Consultancy

T

he legislator in Bahrain has adopted a dual attitude regarding the principle of interest; in its recent judgment, the Constitutional Court has justified this dual attitude by saying that Sharia is a source among other sources for the legislation in Bahrain and not the main one.

According to the Sharia principles, charging interest is prohibited, and any agreement in this regard is considered

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Deciding on the interest percentage must be reconsidered in order to protect both the commercial banks and the consumers. prove otherwise.

Through an in-depth examination of the interest provisions in commercial loans in Bahrain, one can notice that the law does not determine a maximum or minimum rate of the interest. At the same time, the commercial law states

that the parties are allowed to agree on the interest percentage, provided that they don’t exceed the maximum limit, which must be decided by the Central Bank of Bahrain (CBB). But, in practice, the CBB has not determined any limit to the interest, leaving it to the free market.

It has issued, however, some guidelines for the consumers advising them on choosing the bank products – either loans or credit cards, whichever suits their budget – but without any obligation on the parties to follow these guides.

Recommendations Deciding on the interest percentage and determining a maximum limit is something that must be reconsidered by the CBB, in order to protect both the commercial banks and the consumers, where neither of them can change or challenge the initial agreements.

Moreover, determining the interest rate will be helpful to the courts, because no judge’s discretion to be involved will be required, which will undoubtedly minimise judgment conflicts.

Until this hope becomes a fact, the CBB’s advice to the consumer is to thoroughly research all the available variants of interest rates and loan costs offered by the commercial banks, before selecting the most suitable option.

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Before You Sign New Lease Act and Old Lease Agreements agreed in writing otherwise. If the duration of the agreement is less than seven years, the tenant has the right to renew the agreement for up to seven years by sending a registered letter with a delivery note to the landlord, but no later than three months before the expiration of the original agreement. One must notice that the above provision is applied where there is no written agreement between the parties.

2. The lease agreements subject to Act No. 9 for the year 1970 Hasan Al Ajooz, Associate at Al Jabal Consultancy

G

enerally speaking, a lease agreement in Bahrain shall end according to the expiry date specified in it, without the necessity to serve a notice of evacuation. However, in case when the lease contract has expired, and the tenant continues to enjoy the premises with the landlord’s consent – the lease is deemed to have been renewed on the same conditions, but for an unspecified period.

According to the new Lease Act, which came into force in February 2015, two types of lease agreements must be recognised:

1. The lease agreements concluded after the implementation of the new act As per the new act, a landlord does not have the right to request the tenant to vacate the leased property for commercial purposes before the lapse of seven years from the date of handing over the premises, unless the parties

According to the new Lease Act, a landlord has the right to increase the rent only after two years.

The Act No. 9/1970 came with a unique principle, which is known as ‘the Legal Extension’. It states that a lessee has the right to stay in the premises for any period of time as long as he continues to pay the agreed rent. The landlord cannot enforce the

About Al Jabal Consultancy

lessee to vacate the premises, except under very limited circumstances. This act was initially applied only to rented premises located in Manama and Muharraq governorates until the recent judgments of the Constitutional Court, which decided that it would apply to all governorates in Bahrain. The new Lease Act came with a new regulation for such lease agreements by making them valid just for three years from the date of implementation of the act – therefore, after three years, the Legal Extension principle will be abolished.

More Changes According to Article 27 of the new Lease Act, a landlord has the right to increase the agreed rent only after two years from the date of the contract or from the last increase, whichever is sooner. The rate of increase should be up to seven per cent for the properties rented for commercial purposes and five per cent for the civil purposes, unless agreed in writing otherwise. On the other hand, the act states that the above article applies to the agreements subject to the act No. 9/1970 only after the elapse of the three year period. In our view, this provision applies to all lease agreements in Bahrain, not just those located in Manama and Muharraq. However, the judicial interpretation of the new Lease Act is yet to be determined through court rulings in related cases.

Specialising in:

Founded in 1995, Al Jabal Consultancy  Banking & Finance is a full service law firm for Bahrain,  Corporate & Commercial Litigation Oman, and DIFC Courts. With a focus  Bankruptcy & Corporate on major expansion, both for their Restructuring Bahrain and Oman offices, Al Jabal  Dispute Resolution & International Consultancy’s medium-sized team Arbitration focuses on complex transactions  Insurance for major clients both locally and  Intellectual Property Rights internationally.

Contact: Tel +973 1753 0400 Email: aljabal@aljaballaw.com Gulf Insider July 2015

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Bahrain Legal

Confidence Restored Fine-tuning the Property Law Rasha Belbaisi, Legal Consultant and Certified Arbitrator at Zu’bi & Partners Attorneys & Legal Consultants.

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Gulf Insider July 2015

The Problem‌ During recent years, Bahrain has witnessed a revolution of high quality developments and substantive projects that reflected positively on the national economy, through the creation of multiple job opportunities and attracting foreign investment.

Nevertheless, Bahrain’s real estate market has been constantly facing a number of challenges, mainly those arising from the sale of off plan properties to investors without governmental approval. Many of those projects were never fully completed, either due to improper planning and mismanagement of funds, material breaches of contractual provisions, unforeseen events of force majeure, or violations of the laws through undertaking real estate development

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activities prior to obtaining the required licenses and approvals from concerned authorities, leaving the investors without remedies for the incurred losses resulting from such delays.

…and the Solution Based on the large number of legal claims arising from those issues, the real estate development law No. 28 of 2014 (the “new law”) was passed as a tool to

The new regulation also imposes penalties, including imprisonment and fines, on developers who commit any of the violations stated in the law, such as selling unlicensed, incomplete, or unregistered projects, violating the provisions of a granted license, or having knowingly submitted false information to the competent authorities for the purposes of registering a project or obtaining a license.

the right to terminate a sale and purchase agreement and claim compensation for any loss and damage arising from such termination.

Furthermore, under the new law, if a project is partially suspended, the developer will be obliged to complete the project or reimburse the investors for the amounts. If a project has been fully suspended, the developer will be required to complete the project at its own expense, under the supervision of

Always on the Safe Side

a different developer, or sell the project and distribute the revenues among the investors.

One of the most prominent outcomes of the new law is the introduction of the “Real Estate Projects Dispute Committee,” whose main role is to resolve the disputes related to real estate projects within six months. The committee’s verdict can be challenged before the Court of Appeal within fifteen days of the verdict’s issuance date.

As a result to these regulations, off plan properties will be prohibited, since developers will only be permitted to sell completed units. offer further protection to investors and to restore confidence in the Bahrain real estate development market.

Under this new law, real estate developers are prevented from undertaking, marketing, or promoting any project prior to obtaining the required licenses from the concerned authorities (in particular, from the Ministry of Municipalities and Urban Planning) following the submission of all necessary and supporting documents relating to the projects. Furthermore, completed plans, including the design, artist impressions, the start and completion dates and value estimates are required to be presented and approved by the Engineering Practices Regulatory Committee. Therefore, as a result to these regulations, off plan properties will be prohibited, since developers will only be permitted to sell completed units, unless otherwise approved, and a detailed field assessment has been conducted.

As a substantive guarantee to investors’ rights, developers shall be compelled to deposit their projects’ funds into a “Guarantee Account”, prior to commencing work on a project, of which five per cent will be held by the appointed account’s secretary to ensure the settlement of any compensation claims that may arise from the suspension of the project. The new law also grants both the buyer and the seller

About Zu’bi & Partners Zu’bi & Partners is the oldest established local law firm in Bahrain and a toptier legal services provider. The firm provides legal services across all leading sectors, including banking and finance, corporate, commercial, construction, and real estate, to name just a few. It acts for both corporate clients and high net worth individuals in many diverse areas, including litigation and arbitration, property, labour, trade, and family law.

Gulf Insider July 2015

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Property

Is UAE Property Market Prepared For Correction That’s Underway?

Standard & Poor’s latest report on the UAE property market has some interesting points, not least S&P calling for a 10% to 20% correction in UAE real estate prices in 2015.

Additional supply and lesser demand on the UAE property market this year is likely to result in a moderate 10% to 20% correction in Dubai residential real estate prices--much less than what led to the Dubai crisis in 2009.

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Retail and office commercial real estate should prove more resilient than hospitality given the sizable supply of hotel rooms expected in anticipation of Expo 2020.



The diversifying economy, positive demographics, and protective measures from local regulators should help prevent a crisis like that of 2009. Plus, stronger capital structures and good revenue mixes should allow issuers to withstand headwinds over the next 12-24 months.



While Standard & Poor’s expects somewhat of a correction in the UAE’s residential real estate market after three



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years of sharp price appreciation--it should be nothing on the order that led to the Dubai crisis in 2009.

After reaching a peak in 2014, the property market in the United Arab Emirates is set to soften in 2015 and early 2016. The market is facing a turnaround in operating conditions that is likely to dampen performance.



Global oil prices have sharply declined since June 2014 and Standard & Poor’s Ratings Services believes they are likely to remain relatively weak throughout this year and next. (See “Standard & Poor’s Revises Its Crude Oil And Natural Gas Price & Recovery Assumptions,” published on March 26, 2015.) Given the role of this commodity in the region, domestic economic growth in the UAE is likely to slow markedly in 2015 and 2016.

S&P also observe some volatility on the emirates’ equity markets.



 Property development is a volatile and cyclical business by nature, especially in Dubai’s market where most buyers are investors. Current ratings already incorporate this inherent volatility and potential softening in a base case. In alternative scenarios, where market conditions would deteriorate further than currently anticipated, with average selling prices dropping 30%, and interest rates doubling. Even under these harsh conditions, the ratings impact on GCC issuers would likely remain limited over the next 12-24 months as the current backlog and presales support cash flow.

To read the report UAE Property Market Is Prepared For The Correction That’s Underway in full visit www. standardandpoors.com

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Affairs

Israel on the Lookout: Lebanon Haunted by Ghosts of Civil War

By Ramzy Baroud

T

hroughout the years, Lebanon’s demographics have experienced periodic influx. But particularly in the last two years, the demographic shift has been so overwhelming due to the flood of Syrian refugees in desperate need for shelter. The situation is highly charged, if not perilous, considering Lebanon’s unmanageable sectarian balances, let alone the direct involvement of Lebanese parties in the brutal Syrian war. If not treated with utter sensitivity and political wisdom, Lebanon’s vastly changing demographics will not bode well in a country of exceedingly fractious sectarian politics.

The numbers speak for themselves.

According to the UN High Commissioner for Refugees (UNHCR), 790,000 Syrian refugees have crossed into Lebanon since the beginning of the conflict. The number is constantly increasing, as an estimated 75,000 make the difficult journey from Syria to Lebanon every month. Those refugees also include tens of thousands of Palestinians that have borne the brunt of the war in the last two years.

In addition to approximately 250,000 Syrians working and living in Lebanon, the country already hosts hundreds

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of thousands of Palestinian refugees who were driven out of Palestine in several waves, starting with the Nakba, or Catastrophe in 1947-48. While the refugees were initially welcomed by their host country – as Syrians were initially welcomed in Lebanon – they eventually became a party in Lebanon’s war of numbers, as each sect was terrified by the prospect of losing political ground to their rivals. It was only a matter of time before the Palestinian presence in Lebanon became heavily politicized, thus thrusting Palestinian factions into the heart of Lebanon’s sectarian brawl. The weakened and fragmented Lebanon was an easy prey for Israel, which has jumped at every opportunity to invade the small country, leaving behind a trail of blood and destruction. And with every Israeli military onslaught came an attempt at rearranging the power paradigm in favor of Tel Aviv’s allies at the expense of the rest.

This bloody legacy is making a comeback due to the sectarian nature of the Syrian war, and Israelis are already on the lookout for a possible future role.

Aside from the flood of Syrian refugees in Lebanon, legions of Lebanese fighters from Hezbollah and other groups are fully engaged in the Syrian strife based

on clear sectarian lines. Eventually, the fight crossed over into Syrian borders and made it into Lebanon in the form of cars bombs, mortar shells, hostage taking and occasional street fighting. If tension continues to build up, there is little question that Lebanon will become embroiled in its own civil war.

All of this is of course, welcomed news in Israel, which prefers to wait until the warring parties exhaust each other in every way before Israel decides the time and place of the new confrontation.

Israeli Defense Minister Moshe Ya’alon was quoted in the Jerusalem Post on Oct 24 saying that a civil war between Hezbollah and ‘Global Jihad’ had erupted in Lebanon. “To those who are not yet aware, there is already a civil war in Lebanon. Global Jihad, which has infiltrated Lebanon and is attacking Hezbollah, is blowing up car bombs in Dahia and is firing rockets at Dahia and the Beka’a Valley,” he said.

This is a win-win situation for Israel, which continues to navigate the Syrian war so very carefully, so that it is not directly involved in the war, but ready to deal with its consequences whenever suitable.

History is of the essence here. The Israeli attitude towards the war in Syria

Affairs

and the fledgling civil war in Lebanon is similar to its attitude towards Lebanon a few decades ago in the lead up to the Israeli invasion of 1978 and again in 1982, mostly aimed at destroying the Palestine Liberation Organization (PLO).

Lebanon’s political and social upheaval dates back to the pre-existence of both the PLO and Israel, to the years of French colonialism in the Middle East. In 1920, France separated Lebanon from greater Syria, which was under French mandate.

The country was then run by various Christian sects who represented a slight majority according to a 1932 consensus.

When Lebanon became completely independent in 1945, a political arrangement on how to run the country was reached. Christian Maronites were given the seat of presidency, Sunnis the premiership, and a Shiite was installed as the speaker of parliament. Other sects received less consequential positions, but the parliament control ratio still favored Christian sects.

The PLO’s arrival to Lebanon in the early 1970’s – following its departure from Jordan - worsened an already difficult situation. The PLO represented Palestinians who were largely Sunni Muslims, and its existence and growth in Lebanon complicated the extremely

The routine Israeli raids on Lebanese territories undermined the Lebanese army’s role as a protector of the country. delicate demographic balance.

The fiasco in Lebanon however was not a simple tit-for-tat action, but reflected internal and external balances and calculations. On one hand, the ruling Maronite leadership was greatly challenged by the presence of the PLO and the alliance between the latter and Lebanese opposition groups.

The routine Israeli raids on Lebanese territories undermined the Lebanese army’s role as a protector of the country.

Israel was determined to eradicate the “terror infrastructure” in Lebanon, i.e.

PLO factions, thus using the civil war as an opportunity to intervene in 1976 by arming Christian militias. Additionally,

Syria, who also intervened in 1976, did so first on behalf of the Palestinians, then on behalf of the Maronites, when it appeared that they were losing the fight.

A brief lull in the fighting in 1976, was soon interrupted by violence that engulfed Lebanon for nearly 15 years.

In 1978, Israel occupied South Lebanon, driving away thousands of PLO fighters from the area, whose arrival to Beirut had shifted the balance of power, altering the alliances, and, once again Syria’s position. Tens of thousands of Lebanese and Palestinian civilian casualties however, paid the heavy price of the fighting.

The PLO remained in Lebanon until the Israeli invasion of the country in the summer of 1982. Ultimately, the civil war achieved little for the warring parties except that it fit perfectly into Israel’s strategic goal of removing the PLO from South Lebanon, and eventually the country altogether. When Israeli forces finally occupied Lebanon in 1982, as PLO fighters were being shipped by sea to many countries around the Middle East, a triumphant Israeli Defense Minister Ariel Sharon permitted his Christian Phalangist allies to carry out a notorious massacre in the Sabra and Shatilla refugee camps.

Yes, the circumstances are not exactly identical, and history cannot repeat itself in a carbon copy fashion.

But these historical lessons should not escape us as we watch Lebanon descend into another abyss. Judging by the brutality of the Syrian war, Lebanon’s own bloody history, and Israel’s familiar military tactics, another Lebanese war is very much possible. Such a war will revive old animosities and establish new military alliances, but as always the most vulnerable will pay the price as they already have in Syria’s unending bloodbath.

Ramzy Baroud (www.ramzybaroud.net) is an internationally-syndicated columnist and the editor of PalestineChronicle. com. His latest book is: My Father was A Freedom Fighter: Gaza’s Untold Story (Pluto Press).

Gulf Insider July 2015

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Finance

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Dangers of Living for Today Economic optimism encourages Bahrain’s residents to prioritise short-term financial goals over long-term planning.

34 per cent of respondents simply admit that they do not fully understand retirement products.

Urgent Matter “Confidence in the economy strength could be leading some residents to focus on immediate priorities at the expense of their retirement planning,” Zurich International Life Bahrain General Manager Andrew Dawson commented.

Citi Consumer Banking Head Navneet Kampani added, “It is incumbent on Bahrain’s financial services industry to do a better job of educating residents about planning for their retirement and raising awareness about the importance of life insurance.”

Z

urich International Life and Citi have released their recent research findings, which indicate that Bahrain’s local and expat population may be too focused on achieving relatively short-term financial goals and neglecting to have long-term planning.

Positive Outlook Sixty-eight per cent of the 233 respondents to the survey, consisting of locals and expatriates residing in Bahrain, say they are optimistic about the outlook for the economy over the next 12 months. Respondents also feel secure about their individual circumstances, with 83 per cent confident that the state of their personal finances will be good or excellent over the coming year.

Rather than spending their hard earned money, 66 per cent of respondents intend to save or invest any spare cash, with the education of their children and starting a business being the top financial priorities for 34 per cent of 32

Gulf Insider July 2015

residents. The next highest financial priorities are investing in property (32 per cent), a child’s marriage (23 per cent), and starting a family (14 per cent).

Short-sighted The research, however, points to lack of long-term retirement planning among people residing in Bahrain, with only eight per cent naming this as their top financial priority. Moreover, only 47 per cent of respondents say they have taken any steps to secure their long-term future, with just ten per cent investing in a retirement fund in the last 12 months.

Zurich and Citi’s research suggests one reason expats in particular may not be planning for their retirement is a misconception about portability, with 20 per cent of those who do not intend to subscribe to any pension or life insurance product wrongly believing it will be of no use when they leave the country.

Thirty-six per cent also believe they have sufficient savings and investments in place to support their later years, while

The survey was conducted last month by The Nielsen Company, a leading global provider of information and insights into what consumers watch and buy.

In December 2014, Zurich and Citi announced the signing of an exclusive 15-year strategic agreement to offer Zurich’s comprehensive life insurance solutions to Citi’s consumer clients in Bahrain and UAE, and Citi’s Non Resident Indian (NRI) business in the Middle East.

(L-R) Andrew Dawson, Bahrain General Manager, Zurich International Life and Navneet Kampani, Consumer Banking Head, Citi Bahrain

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GULF ROUNDUP news around the GCC and beyond

life in the gulf

‘AXACT Sold over 200,000 Fake Degrees in Gulf Countries’ Over a staggering 200,000 people from the Gulf countries bought fake online degrees and diplomas from dubious Pakistan IT firm AXACT in the past four years, said the former AXACT staff turned whistle blower Sayyad Yasir Jamshaid.

“At AXACT’s 24/7 Karachi headquarters, we handled roughly 5,000 calls daily. Of them, 60 per cent came from the UAE and Saudi Arabia,” Jamshaid told XPRESS in an interview.

“Between 2011 and mid-2015, AXACT issued degrees and diplomas from 350 non-existent universities to over 200,000 Middle East residents,” said the Pakistani. XPRESS has names, credit card transaction details, and payment receipts of several high-profile Abu Dhabi, Dubai, and Al Ain based clients who paid ridiculous amounts to obtain bogus degrees. – GULF NEWS

Bahrain Healthcare ‘One of the Best in the World’ Bahrain has some of the best healthcare services in the world, according to a new global quality of life index.

Numbeo, the world’s largest database of user-generated content about cities and countries, found that only Japan was better in terms of overall quality of the healthcare system, healthcare professionals, equipment, staff, doctors, and level of cost.

Using data collated from online surveys – not official government reports – the site found that Bahrain was 21 places ahead of the UK and 15 ranks higher than its nearest GCC rival Qatar, which was placed 17th in the world in terms of healthcare.

Meanwhile, Kuwait came 42nd – on par with India and Singapore – while Saudi Arabia was 53rd, the UAE 63rd and Oman was not listed. – GULF DAILY NEWS

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Gulf Gov’ts to Reduce Roaming Fees Governments of the six GCC countries have agreed to gradually reduce roaming charges when making calls, sending text messages, and using data within the sixnation bloc, according to a statement carried by state media. Cuts to fees on calls and text messages would be introduced from April 1, 2016 and would take place over three years, while data charges would be trimmed from the same date but over a five-year period. The decision was announced following the GCC Ministerial Committee for Post, Telecommunications and Information Technology meeting in Doha. The statement did not disclose by how much the charges would be reduced. – ARABIAN BUSINESS

News

Dubai Police Radars to Check Tail-Gating Beginning from this month, Dubai Police will use radars to catch motorists who don’t keep enough distance between vehicles, an offence also commonly referred to as tail-gating.

Fines and black points for violators will also be issued, according to Major General Mohammed Saif Al Zafeen, Assistant Commander, Operations, Dubai Police.

Zafeen said the decision was sanctioned by the Major Genelar Khamis Mattar Al Muzzeinah, Commander of Dubai Police.

“This technology [of cameras] is one of the best ways to reduce accidents borne out of lack of leaving enough space between the vehicles, which causes a lot of traffic accidents,” he said.

On how much distance is “enough”, General Al Zafeen said the cameras “will be in position to know the limit of the desired space and take pictures.

Since the beginning of this year, 11 people have died in accidents in Dubai resulting from not keeping enough distance between vehicles. – EMIRATES 24l7

Saudi Universities Best in Region King Fahd University of Petroleum and Minerals (KFUPM) has been ranked first among the region’s Top 100 universities, according to QS World University Rankings 2015. According to the report, the American University of Beirut (Lebanon), King Saud University (Riyadh), and King Abdul Aziz University (Jeddah) followed respectively.

The rankings compare the Top 800 universities globally across four broad areas of interest for prospective students, including research, teaching, employability, and international outlook. – ARAB NEWS

Challenge Bahrain 2015 Announced

Top 85 Floors of Kingdom Tower Will Go Unoccupied The top 85 floors of Jeddah’s under-construction Kingdom Tower will go unoccupied as they are too narrow for apartments or offices, international reports suggest. UK daily The Guardian reported: “While the Kingdom Tower promises to house 121 serviced apartments, 360 residential apartments, a 200room Four Seasons hotel, and much office space to boot, its top 85 floors will go unoccupied as they are too narrow for apartments or offices.

“Some (of those floors) will house plant machinery and communications equipment,” the report continues.

Upon completion, Kingdom Tower will be at least one kilometre tall, thus stealing the crown of the world’s tallest building from Dubai’s 828 metre tall Burj Khalifa.

The Guardian’s report adds Kingdom Tower’s developers will not be too perturbed by how long the tower takes to “fill up”.

“This is often the case when exceptionally tall, speculative towers are marketed. The Empire State Building took two decades to fill with tenants,” the report adds. – ARABIAN BUSINESS

Challenge Family announced last month the world’s first half distance night triathlon, to be held on November 20, 2015.

Challenge Bahrain will also double as the grand final of the prestigious Nasser Bin Hamad Triple Crown, which will see the world’s top triathletes race in a bid to become triathlon’s first instant millionaires. Challenge Bahrain is expected to attract over 1,000 age group athletes from around the world.

Gulf Insider July 2015

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Travel travel insider

The 10 best airlines in the world

Q

atar Airways has been named the Best Airline in the World for 2015 by leading aviation consumer website Skytrax.

The Gulf-based carrier was presented with the honor at an award ceremony on Tuesday at the 2015 Paris Air Show.

“I am honored to lead a company that has paved such an accomplished path to excellence, and innovation, demonstrating the team’s unwavering pride in their work and the experience provided to each of our passengers,” Qatar Airways Group CEO Akbar Al Baker said in a statement.

“Becoming an award-winning airline takes dedication and passion— and retaining such a ranking takes commitment, which I thank each and every team member at Qatar Airways for.”

The Skytrax rankings are based on the impression of 18.9 million travelers from 105 different countries. The survey, which covered more than 245 airlines,

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Gulf Insider July 2015

measured 41 different parameters ranging from boarding procedures to seat comfort to the quality of service.

Here are the 10 best airlines in the world according to the result of the Skytrax survey.

grown immensely in the past two decades and now operates a large fleet of Airbus and Boeing wide-body jets. The airline is credited with pioneering the “premium economy” cabin. EVA also took home the prize for the World’s Best Airline Cabin Cleanliness.

10. Qantas

8.Garuda Indonesia

Previous rank: 11 - Despite suffering a series of severe financial setbacks, the quality of Qantas’ service has not suffered. The airline received praise for its strong customer service and inflight entertainment. And then there’s Qantas’ calling card — it has a fatality-free safety record in the jet era.

Previous rank: 7 - After being deemed unsafe to fly into the European Union from 2007 to 2009, Garuda Indonesia has experienced a dramatic turnaround in recent years. The Indonesia flag carrier has undertaken extensive fleet renewal and service-improvement measures to regain the trust of both fliers and safety regulators. Economy fliers have raved about the airline’s comfortable seats and selection of southeast Asian cuisine. This March, Garuda became a full-fledged member of the Skyteam global airline alliance.

9. EVA Air Previous rank: 12 - Taiwan’s EVA Air (pronounced /ee-vee-ay/) was founded in 1989 and is an offshoot of global container-shipping giant Evergreen Group. The Taipei-based carrier has

Travel

7. All Nippon Airways (ANA) Previous rank: 6 - All Nippon Airways is the largest international carrier in Japan and home to one of the world’s largest fleets of Boeing 787 Dreamliners. ANA drew high praise from Skytrax reviewers across the board, scoring near perfect scores for cleanliness, service, and safety. Many of its planes feature slide-forward-style reclining seats that increase overall privacy, as well as power and USB outlets even in economy.

6. Etihad Airways Previous rank: 9 - Abu Dhabi-based Etihad airways is the flag carrier of the United Arab Emirates, with its Airbus and Boeing fleet traveling to about 96 destinations. Some of its special features include noise-reduction headphones and mood lighting in the cabin that’s adjusted to keep passengers well rested.

5. Emirates Previous rank: 4 - Over the past 10 years, Dubai’s Emirates has developed into one of the world’s premier long-haul carriers. Operating almost exclusively through its palatial hub at Dubai International Airport, the carrier

boasts the world’s largest fleet of Airbus A380 super jumbos and Boeing 777 wide-body jets. Emirates’ state-ofthe-art in-flight entertainment system includes a wide selection of video and music options on demand, and even allows for live television on some “ice” entertainment system-equipped 777 aircraft. In fact, Emirates has taken home Skytrax’s award for best in-flight entertainment 10 years running.

4. Turkish Airlines Previous rank: 5 - Turkish Airlines is the flag carrier of Turkey with a hub in the increasingly popular travel destination Istanbul. The airline breaks records with its available destinations, flying to over 100 countries and over 200 cities worldwide. The airline is extremely fast-growing, is a member of Star Alliance, and has won the Skytrax award for Best Airline in Europe five years in a row.

3. Cathay Pacific Airways Previous rank: 1 - Although Hong Kong-based Cathay Pacific no longer holds the top spot, the airline still managed to take the prize for Best Transpacific Airline. With a fleet of longrange Boeing 777-300ER jets and a business strategy centered on offering

a high frequency of flights, Cathay is one of the finest flying experiences in Asia.

Skytrax reviewers gave the airline high marks for seat comfort, service quality and inflight entertainment.

2. Singapore Airlines Previous rank: 3 - Singapore’s standout service makes for a famously pleasant journey during which flight attendants are trained to treat customers with extreme care and respect. Personal TVs with plenty of entertainment options and hot towels served before take-off are just some of the economy perks.

The airline’s home base at Changi International Airport is one of the finest facilities in the world and has been named by Skytrax as the Best Airport in the world three-years in a row.

The Skytrax rankings are based on the impression of 18.9 million travelers from 105 different countries.

1. Qatar Airways Previous rank: 2 - This is the third time Qatar has taken home the top honors with the carrier also winning in 2011 and 2012. The Doha-based airline received praise from reviewers for its seat comfort and in-flight entertainment. In fact, the airline also took home the prize for Best Business Class Seats. Economy class guests get to enjoy features like smartphone and tablet connectivity to their personal screens. The airline links over 125 destinations across the globe and is expanding its services from Qatar to 50 new destinations, including direct flights to Los Angeles, Miami, and Dallas.

Gulf Insider July 2015

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Life

The underground fashionistas of Tehran

T

hese photos are the work of French photographer Eric Lafforgue who says, despite the best efforts of religious police, fashionable looks remain hugely popular in Tehran.

But embracing fashion isn’t without risk - all the more so since Iranian officials announced a crackdown on ‘western’ hairstyles and beauty treatments.

Although women are frequently the target of restrictive rules, it is unusual for men to be hit in this way.

The last time was in 2010, when the authorities introduced a haircut code.

Now beauty treatments such as tanning have been outlawed, with officials describing them as being a sign of ‘devil-worshipping’ and homosexuality - both of which are punishable with death.

The new rules were unveiled last month by Mostafa Govahi, head of Iran’s hairdressing trade union who revealed the plans during an interview with the Iranian Students News Agency.

‘Any shop that cuts hair in the devil worshipping style will be harshly dealt with and their licence revoked,’ he said.

‘Haircuts that show symbols or signs of devil worshippers or those adopted by homosexuals are banned. I won’t allow such wrongful western styles as long as I’m in this position.’

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Gulf Insider July 2015

Styles singled out by Mr Govahi include gelled spikes, a particularly popular look in Tehran.

Tanning beds and eyebrow plucking are also banned, while men who get tattooed run a very real risk of arrest.

they are well aware that the police cannot possibly arrest everyone.’

Iran is famous for its clothing restrictions, in particular those that apply to women. Although pale and bright colours are allowed, garments must be

Tanning beds and eyebrow plucking are also banned, while men who get tattooed run a very real risk of arrest.

Nevertheless, as Lafforgue’s photos reveal, some men are willing to risk arrest in order to dress as they please.

Women too are defying the authorities, with many stepping out in high heels and embracing ‘western styles’ such as skinny jeans.

Lafforgue isn’t surprised. ‘You see a lot of young people wearing whatever clothes they feel like,’ he explains.

‘Even though they know they might be arrested, they wear what they want anyway. It’s a statement and anyway,

loose fitting. In addition, headscarfs must be worn in public and the concealing chãdor when visiting religious sites.

Saudi Arabia has similarly tough rules and, along with requiring women to appear in public only when accompanied by a male guardian, insists that no bare skin should be seen. Although men can dress more or less as they please.

In Sudan, woman who don’t wear headscarves can expect to be flogged, as can women who wear trousers in public.

Life

Advertorial

Ramadan Experience Reimagined Prepare for an unprecedented Ramadan celebration at The Ritz-Carlton, Bahrain.

T

he Ritz-Carlton, Bahrain visitors are invited to dine with family and friends in two majestic venues created specifically for the occasion – The Glow Ramadan Lounge and Al Khayma Ramadan tent.

With a wide selection of traditional Bahraini cuisine, guests can look forward to an awe-inspiring, unforgettable culinary experience.

The Glow – Ramadan Lounge by Jaguar Land Rover The Glow – Ramadan Lounge by Jaguar Land Rover will mesmerise guests with a thirteen metre high domeshaped pavilion. The venue can welcome up to 250 guests from sunrise to sunset and includes a large lounge area with oversized seats. The Glow provides the perfect set-up for private Iftar or Ghabgha for corporate groups. This oasis has been created solely for the Holy month of Ramadan. Yet, the focal point of The Glow is an avant-garde car display, showcasing the world’s most leadingedge engines.

The epicurean odyssey is exhilarated by the surrounding 40 square metre foodie-verse, where seasonal-inspired

traditional favourites blend in with the culinary most exuberant creations.

The luminous décor, fusion cuisine, chilled DJ vibes, and state-of-the-art architecture of The Glow is designed to make guests set a social trend of their own as they indulge in a stylish Ramadan experience reimagined by The Ritz-Carlton, Bahrain.

BD 24++ for Iftar and BD 26++ for Ghabgha. Special rates apply for groups of 20 or more.

Al Khayma Enter the realm of Ramadan as you step into a maze of lights, scents, and colours inside Al Khayma. The most renowned Ramadan tent will surprise guests with its décor, inspired by the oriental souk of Fez. Inside, long turquoise and gold drapes, crystal chandeliers, and hanging light spheres adorn the tent and set the stage onto an alluring culinary line up.

Large buffet spreads are complimented by live cooking stations, resembling a series of street food and spices stalls, where the pleasure of breaking the fast marries the joy of sharing lasting memories with family and dear ones. The atmosphere is enlivened by Al Khayma instrumental band.

BD 24++ for Iftar and BD 26++ for Ghabgha.

Final Touches Fusing traditions with grandeur, both venues will serve some of the most appreciated Ramadan beverages. The Glow offers a selection of traditional and special flavours of shisha inside its lounge, while Al Khayma provides a parted area for families and nonsmokers. The guests can also enjoy the comforts of their own private pergola for Iftar and Ghabgha, including silver service of selected hot buffet items and three complimentary shishas.

Ramadan Package Starting at BD 127++ per room per night, this package includes a stay in a Deluxe or Club room accommodation, plus a Ramadan experience like no other inside The Glow, Ramadan Lounge by Jaguar Land Rover, at The Ritz-Carlton, Bahrain.

For more information and Ramadan reservations, call +973 1758 6499, or email rc.bahrz.restaurant.reservations@ ritzcarlton.com.

Gulf Insider July 2015

39

Life

22

o.

N e l i f o r P Insider

Suhail Algosaibi Entrepreneur, startup investor and mentor, author, marketer, speaker, and activist. wins, and society becomes a better place.

Can you share your best business advice for the first-time startup founder?

First, think of the buyer/market, not the product. Too many startup entrepreneurs think of the product without giving nearly enough thought as to whether there is a market for it.

Second, make sure you have enough cash, because you’ll probably need more than you thought you did. Third, offer ten times value, meaning if you sell your product for BD 10, then the value the user is getting should be BD 100.

Finally, stop doubting yourself and get on with it!

A

mong your many entrepreneurial ventures, you’ve introduced in Bahrain the world’s first and only 23-minute weight loss centre.

What’s the science behind this concept?

The concept you’re referring to is the DreamBody Centre (DBC), where we combine three things that you need to lose weight: fitness, diet/nutrition, and motivation. The fitness part is based on circuit training, where you train your whole body in just 23 minutes. The common term for this kind of training is High Intensity Interval Training (HIIT).

At which stage of your professional life did fitness come into play?

I used to live in London in the 1990s and saw the rise of the professional, branded health club chains (as opposed to the single-location bodybuilder-owned gyms that were common place before that) and thought of starting something similar in Bahrain. I eventually ended up starting a kickboxing school in the early 2000s and DBC in 2007.

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Gulf Insider July 2015

You hold a third degree black-belt rank in Zen-Do kickboxing. What is the meaning and value attached to this title?

I’m very proud to have received my black belt from Master Rafael Nieto, former British, European, and world kickboxing champion. The black belt signifies a certain level of skill, but I think it also portrays wisdom and humility. It’s not about having a black belt; it’s about being a black belt.

What sparked your interest towards startup mentorship?

I think being an entrepreneur is the most glamorous job in the world. It’s also very hard, stressful, and fraught with danger. When I started, I had no mentors, so I know how difficult it can get. The toughest challenges are the psychological ones – dealing with your own inner demons. I think mentoring will be something I’ll do for the rest of my life. I truly believe that it’s every experienced person’s responsibility to mentor someone younger, not just in the field of entrepreneurship. Everyone

What’s the best source of information about startups?

Would you recommend the how-to type of books?

There’s a great digital startup magazine in Bahrain called Startup Bahrain; that’s a good start. I also recommend reading Entrepreneur, Fortune, and Fast Company magazines.

I’d also get my hands on any book about successful entrepreneurs. And, if I’m permitted a quick plugin, subscribe to my marketing and entrepreneurship course at suhailalgosaibi.com. Also, I would definitely read self-improvement books! Start with The Seven Habits of Highly Successful People; his book is timeless.

What was your go-to source of inspiration at the start of your entrepreneurial journey?

I probably read hundreds of business books, and I admire people like Ray Croc, Richard Branson, and Steve Jobs. My late father was also a huge influence on me. Though he wasn’t an entrepreneur, his presence and support were invaluable. I miss him greatly.

Life

9 Books By CEOs

That Will Teach You How To Run The World

By Drake Baer

Here are the best leadership books from people who have led their companies to success.

“The Hard Thing About Hard Things” What is the hard thing about hard things? That they don’t have a formula, says Ben Horowitz.

“Hard things are hard because there are no easy answers or recipes,” he writes. “They are hard because your emotions are at odds with your logic. They are hard because you don’t know the answer and you cannot ask for help without showing weakness.” Horowitz, now one of the most sought-after investors in the game, used to be CEO of software management company Opsware before it was acquired by HP for $1.6 billion.

“My Years with General Motors” Alfred Sloan was the CEO of General Motors from 1923 to 1946 — when the car company was arguably the most important organization on Earth. More than your average business memoir, the book is a distillation of Sloan’s experiences and thoughts around how to steer a massive organization. It serves as a treatise on decentralization and the structure of the modern corporation.

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Gulf Insider July 2015

“Business @ the Speed of Thought: Succeeding in the Digital Economy” Bill Gates’ 1999 book nailed the essence of data-based decisionmaking before “data science” was even a thing. “The most meaningful way to differentiate your company from your competition, the best way to put distance between you and the crowd, is to do an outstanding job with information,” he writes. “How you gather, manage, and use information will determine whether you win or lose.” The book is also compelling for its historical value. The year the book was published, Gates’ company set the record for market capitalization at a cool $618.9 billion.

“Rework” Coauthored by Jason Fried, the cofounder and CEO of Basecamp, “Rework” is a spare startup manifesto. While everything in the book might not apply to you — Fried’s company has remained at a tiny 37 members while staying profitable — it’s useful for the contrarian mirror it provides. After reading it, you’ll scrutinize every meeting request that crosses your desk.

Life

“Pour Your Heart into It : How Starbucks Built a Company One Cup at a Time”

“Winning: The Ultimate Business How-To Book” Jack Welch ruled General Electric from 1981 to 2001. Welch shared the history of the experience in his “Jack: Straight From the Gut.” But his followup book “Winning” makes the list because it reveals Welch’s approach to management and careers, from dealing with a bad boss to landing promotions to executive decision making.

Howard Schultz — now worth $2.2 billion — changed the world with Starbucks, a company that made cafe culture endlessly accessible. Today, it has 21,000 stores in over 65 countries. He unpacks he method in his 1999 memoir. “People want guidance, not rhetoric,” Schultz writes. “They need to know what the plan of action is, and how it will be implemented. They want to be given responsibility to help solve the problem and authority to act on it.”

“Let My People Go Surfing: The Education of a Reluctant Businessman” Patagonia founder and CEO Yvon Chouinard is rightly known for keeping it real. “No young kid growing up ever dreams of someday becoming a businessman,” the outdoors mogul begins his memoir. “He wants to be a fireman, a sponsored athlete, or a forest ranger. The Lee Iacoccas, Donald Trumps, and Jack Welches of the business world are heroes to no one except other businessmen with similar values. I wanted to be a fur trapper when I grew up.” As an executive, Chouinard kept that adventurous ethos at the core of the company, whether by making sustainable supply chains or encouraging his employees to — yes — go surfing in the middle of the day.

“#GIRLBOSS” Sophia Amoruso grew online fashion retailer Nasty Gal into a $100 million business. In “#GIRLBOSS,” Amoruso — who started her business selling clothes on eBay — takes a delightfully flippant view on building a career. Discussing her life before Nasty Gal, she writes: “What all of these jobs taught me is that you have to be willing to tolerate some s**t you don’t like — at least for a while. This is what my parents’ generation would call ‘character building,’ but I prefer to call it ‘#GIRLBOSS training.’ I didn’t expect to love any of these jobs, but I learned a lot because I worked hard and grew to love things about them.

“Delivering Happiness: A Path To Profits, Passion, And Purpose” Zappos CEO Tony Hsieh’s “Delivering Happiness” — which has become a brand unto itself — is remarkable for the way it marries airy startup visions with pragmatic business knowhow. Consider this selection: “My advice is to stop trying to ‘network’ in the traditional business sense, and instead just try to build up the number and depth of your friendships, where the friendship itself is its own reward. The more diverse your set of friendships are, the more likely you’ll derive both personal and business benefits from your friendship later down the road. You won’t know exactly what those benefits will be, but if your friendships are genuine, those benefits will magically appear 2-3 years later down the road”. And there are tons more of such nuggets in the book.

Gulf Insider July 2015

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Life

Oman homes The luxury $4 Million cliff-top villas in Oman that come with a chauffeur driven Bentley

B

arr Al Jissah is nestled into the Al Hajar mountains and is a short drive from Oman’s capital city of Muscat.

With five spacious bedrooms and six bathrooms, the exclusive homes also come with their own swimming pool and access to private sandy beaches - but they will set you back 1.5 million Omani Rial.

Each of the bedrooms, with built in wardrobes and en suites, have floorto-ceiling windows that open out onto a balcony with panoramic views of the Gulf of Oman - and there’s a private roof top terrace.

Decked out in a modern white colour scheme, the properties - designed for both full time use and as a holiday home - have all the latest mod-cons and there’s a separate room for a maid.

For those that aren’t arriving by boat, a chauffeur-driven Bentley will collect those staying at the resort, shared with the grounds of the five star Shangri-La Hotel, from the airport in nearby Muscat.

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Gulf Insider July 2015

Life

Development: Some of the townhouses (pictured) are also on the market for those looking for a different property at the glorious resort

Bar Al Jissah: Home owners will also have exclusive access to all the facilities at the Shangri-La hotels, including a spa, gym and a mélange of traditional restaurants and bars The complex, which began with luxury hotels, has also added 11 limited edition four-bedroom town homes, a souq, a private marina club and there are plans to build marina apartments overlooking the dock.

Home owners will also have exclusive access to all the facilities at the ShangriLa hotels, including a spa, gym and a mélange of traditional restaurants and bars.

There’s also an onsite beauty salon,

pharmacy and shop if the 25 minute trip to the capital seems too far and for those into nature the resort has its very own Turtle Beach - part of a project to care for endangered species native to Oman’s shores.

The three neighbouring hotels include the Al Husn ‘The Castle’ - the most luxurious of the three, Al Bandar ‘The

Town’ - the vibrant heart of the resort and Al Waha ‘The Oasis’ - this tends to be the more family-friendly hotel, boasting several swimming pools and a ‘lazy river’.

To find out more about the resort or the cliff-top villas visit barraljissah.com

Gulf Insider July 2015

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Motors

Mercedes G55

Mohammed Al Kubaisi in a bright blue Mercedes McLaren SLR

Jaguar F Type

Lamborghini Aventador versus a matte blue Ferrari 458 Italia

Qatari

Mercedes-Benz SLS AMG Roadster

addicted to supercars

M

ohammed Al Kubaisi, aged 26, quickly built up a large fortune when his father handed over the reins to the family business - and like any young man with wealth, he indulged in his passion.

But he has also opened up the world of supercars to the masses by congregating dozens of the coveted luxury vehicles at events in Doha.

Usually locked away in the garages of the extremely wealthy or glimpsed roaring the streets of Doha - Mr Al Kubaisi decided to feed his addiction to supercars by gathering together various models, including McLarens, Lamborghinis and Ferraris, in one place, for fans to admire.

He describes himself as ‘a fan of supercars’ and has owned a fleet, including $235,000 Bentley Continental GT, a $221,000 Mercedes-Benz SLS AMG and a Ferrari 458 Italia worth $240,000.

His current ride is a powerful Rolls Royce Ghost - which comes with an

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Gulf Insider July 2015

eye-watering price tag of $270,000.

Mr Al Kubaisi, who owns a small but successful real estate business which specialises in rentals for expats, said his events have been well received by Qatar’s wealthy car enthusiasts.

From a wealthy Qatari family, he moved to Denver, Colorado, to study at the age of 18. Now, back in Qatar, he is single, and spends his time with friends, playing soccer or with his supercars.

Mr Al Kubaisi adds he loves life in the fast lane - but his biggest problem is deciding which car he wants to drive.

‘I had a Maserati Granturismo S - it was a nice car but I eventually sold it and bought an Aston Martin Rapide which I didn’t think was very good,’ he said.

‘I sold that and bought my very first supercar, the Ferrari 599 GTB which was great but it wasn’t quite powerful enough so I sold it and bought a (Mercedes-Benz) SLS 63 - but again I needed more power.

‘So I waited around six months and bought the Ferrari 458 Italia - which is a great car.’

Mercedes McLaren SLR

Mercedes-Benz SLS AMG Roadster A pair of Mercedes G55 trucks

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Motors

Dubai’s Abandoned Luxury Cars

D

ubai Police have been finding hundreds of cars over the last six plus years abandoned at airports, streets and other areas near by the airport. Many are luxury high end cars, and they are eft behind without any clues or paperwork.

So why are people leaving their luxury cars at the airports in Dubai?

A Ferrari Enzo (pictured bottom left) , worth more than $1 million, was abandoned in a Dubai airport parking lot. After weeks of the car sitting there police started to wonder if the owner would come back to pick up.

The main reason people abandoning their cars is that if you fall behind on your car payments, bounce a check, stop paying your credit card, or default on your mortgage, you go to prison So all those fancy cars gathering dust in airport parking lots across the UAE were abandoned by owners who chose to escape the country instead of going to prison.

When police discover an abandoned car, they issue a warning notice. If the owner fails to appear after 15 days, the car is impounded.

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Gulf Insider July 2015

Abandoned Lamborghini seen in this picture at airport.

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Motors

Aston Martin for the water Luxury British car maker has revealed it plans to produce a series of powerboats.

Image: Quintessence Yachts

‘W

e need to open our world to water,’ says Aston Martin design director Marek Reichman, and so the AM37 yacht will enter production later this year.

There will be two versions of the boat: the standard AM37, with a maximum speed of 50 knots (99 kph), and an even sportier AM37S capable of 60 knots.

It is a ‘gran turismo’ leisure craft which boasts sculpted wood and hand-stitched leather.

The interior will feature a highdefinition touch screen that can be 50

Gulf Insider July 2015

worked with buttons, remote control, or voice commands.

There will be two captains chairs and a wrap-around bench set to accommodate 8 people. .

Reichman said it was created in accordance with the brand’s ‘heart over mind’ approach to creative design, a philosophy that has led to some of the most arresting sports cars in the world.

‘It takes inspiration from [car] models the world hasn’t seen yet,’ Reichman told the BBC. ‘That’s one of the reasons why this boat will have such longevity.’

It has a sculpted stern, which resembles the rear of modern Aston Martin cars.

A n o t h e r distinctive feature is the deck, which opens to cover the open space for a seamless path onto the vessel.

Once on-board it quietly slides back to expose the whole interior.

‘It’s a balance of beauty and engineering. The same principles apply here as they do to cars.’

The AM37 will be revealed at the Monaco Yacht Show in September.

Mariella Mengozzi, chief executive of Quintessence Yachts, the Dutch manufacturer building the boats, said Quintessence was selected specifically to translate Aston Martin’s design language into an ‘innovative concept in the yachting world’.

The yacht’s carbon composite structure was created with the help of Dutch naval architects Mulder Design to ensure car-like comfort and performance.

True to Aston Martin’s heritage, the boats will be made in Southampton, in the south of England.

Style

The $25 Million Megayacht

T

he Xhibitionist is a 75 meter multipurpose yacht designed

by Swedish-based car designer Eduard Gray, the ship has huge amounts of interior space decked out in Art Nouveau, with a Steinway piano, a dual staircase, fine crystal Baccarat lighting, and space for a private fleet of luxury cars. Its engines are proudly exposed inside the ship behind glass walls.

Powered by solar panels which fold up and double up as a concert space or helipad with space for three helicopters.

The fly deck features a Jacuzzi, and at night, the superyacht glows in the dark thanks to oceanLED lighting. Go on treat yourself – you know you deserve it.

Image: Xhibitionist by Gray Design Gulf Insider July 2015

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Style

APPLE WATCH 8 THINGS I LEARNED FROM WEARING AN APPLE WATCH FOR A COUPLE OF WEEKS “The Apple Watch is our most personal device ever.”

-Tim Cook 1: The Apple Watch will never replace your iPhone.

This is not a MacBook for your arm.

The screen is tiny. It has no keyboard.

You can read the news on it. You can read Twitter. These are things you can do, they’re just not things you’d ever want to do. The Apple Watch is not a device intended to replace your phone; it’s intended to augment it. It takes all the incoming notifications, alerts, and messages, and funnels them down into a screen about the size of a potato chip.

I’ve never spent more than a few seconds at a time interacting with my Apple Watch. If I need to perform a task of actual consequence, I use my phone or computer. And that’s the idea. You’re never going to spend hours or even minutes laboring over your Apple Watch, because it’s not a personal computer -it’s a passive one.

But you can send your heartbeat to your loved ones! And they can feel it!

Sending your heartbeat to a loved one is about as personal as faxing them your cholesterol levels. There are infinite ways to get personal using a mobile device.

This isn’t one of them.

2: Battery life isn’t a problem.

When the Apple Watch was announced 52

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last year, there was little mention of battery life. I assumed this meant the battery life was terrible, otherwise Apple would have been singing its praises from day one. I was wrong. The battery works great.

As I said before, the Apple Watch is a passive device. If you’re trying to catch up on the latest episodes of Silicon Valley using your Apple Watch, you’re doing it wrong. The Watch lurks quietly in the background, meaning it’s not doing a lot of processing most of the time.

3: The Taptic Engine could mean the death of the ring tone.

“Taptic Engine” is Apple’s fancy word for the thing that vibrates. It produces highly tuned vibrations which mimic the sense of being tapped on the wrist.

I’ve got “prominent haptic” enabled on my Watch, which taps my wrist a few seconds before I get an alert. This means that a few seconds prior to receiving a text message, I get a little nudge on my wrist letting me know that it’s about to arrive.

I really want haptic technology to succeed, because it eliminates the need for ringtones. I don’t need to hear a specific sound to differentiate my phone from the person sitting next to me, because it’s vibrating my wrist, not

Style

theirs. If we can all feel our devices, there’s no longer a need for an entire room to experience an alert, only the person receiving it.

4: The Crown is useless.

The crown serves its purpose well as a button. You press it to select things.

Hooray for buttons. But as a scroll wheel, the crown is useless. It works fine, I just always end up scrolling up and down using my finger. It certainly feels good to use the crown. But the novelty wears off.

5: I am amazing for not lying in bed all day.

Every day, the Apple Watch and I go to war over my “standing goal.” I get achievements for not lying down. Or not sitting down. I get rewarded for standing up, I think. I can’t really tell. It says my standing goal is 12 hours a day, which doesn’t make sense because that seems like an awful lot of standing.

6: Phone calls suck. Texting does not.

The speaker is terrible and it forces you to broadcast your conversation publicly. It’s impractical to do this in a restaurant or library. Texting is terrific, however. You speak into the watch and Siri translates your speech into text.

7: It’s great for runners.

As a watch for runners the Apple Watch is terrific. The interface is dead simple. Battery is plentiful, and the screen is viewable in direct sunlight.

8: This is the future.

Every now and then, I use a new gadget which gives me that eerie this is the future feeling. Those moments do happen with an Apple Watch, but they’re sparse. Once more apps roll out, that’ll probably change. Apple was right. It is personal.

Gulf Insider July 2015

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Art

Bahrain’s Photo History Each month Gulf Insider will publish photos showing Bahrain in past times.

To view many more visit Gulf-Insider.com and LIKE Gulf Insider on Facebook to receive new (er‌ old) Bahrain photos almost daily.

50th anniversary of Gulf Aviation Gulf Air in 2000. The uniforms represent the first uniform worn by GF cabin crew back in 1967. Photo courtesy of Michael Stokes.

Oman, possibly Ibri in 1963. Photo credit - Capt. James Stokes

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Gulf Insider July 2015

Photo courtesy of Michael Stokes (from Capt J.B.Stokes collection)

Art

Photo credit - Capt. James Stokes

When Bahrain had one commercial flight per week - Hanno flew to Bahrain and Shajah weekly in the late 1920s and throughout the 1930s. She had a 100 per cent safety record.

1967 cabin crew uniform designed by Joy Stokes, when Gulf Air attained its first Fokker F27 aircraft.

Photo credit - Michael Stokes

Aerial view of Manama, circa 1950s.

Aerial view - British Political Agency, now UK embassy (center left). Government Road leads along the seashore toward Mina Manama. Circa late 50’s - early 60’s

In the foreground, the Pearl Cinema and the road towards Naeem Hospital.

Gulf Insider July 2015

55

Art

My inspiration comes from the traditional heritage of Bahrain and other cultures.

Mahmood Al Khaja

H

aving been drawing since the age of five, Mahmood has no formal education in art (he only completed a brief course to learn the basics of oil painting on canvas). It didn’t stop him from pursuing his passion; inspired by his aunt and with support from his family and friends, he continued to practice various techniques until he discovered acrylic paints – his favourite.

Today, his portfolio of classical art with strong hints of surrealism includes digital art, commercial and editorial illustrations, character designing, concept art, and storyboards. “My inspiration comes mostly from the traditional heritage of Bahrain and other cultures, such as classical European or Iranian artists,” he told us.

You can see more of Mahmood’s works on Instagram: @mk_mahmood and www.mk-bh.com. You can also reach him on +973 3915 1777 or artist2.alkhaja@gmail.com 56

Gulf Insider July 2015

Art

Gulf Insider July 2015

57

Last Word

Have we finally unlocked the secret to happiness?

The second step in the book’s plan is building emotional resilience through gratitude, compassion, acceptance and forgiveness.

Scientists reveal the four simple steps that will banish the blues.

W

hat would it take for you to be truly happy?

Forget money, health and success. According to one group of scientists, what you really need is a four-step, 10-week programme that changes your mindset.

Created by the Mayo Clinic in the USA, the programme uses a series of exercises that they say helps train people’s minds into choosing happiness.

Dr Amit Sood, who led the research, says 40 to 50 per cent of your happiness depends on the choices you make and where you place your focus each day.

‘You can choose to live focusing on what is right and beautiful in your life,’ said Dr Sood who is the author of a new book, ‘The Mayo Clinic Handbook for Happiness: A Four-Step Plan for Resilient Living.

‘Happiness is a habit,’ he added.

‘Some of us are born with it; others have to choose it.’

Previous research has shown that our minds are hard-wired to focus on negative experiences.

For our ancestors, this helped keep 58

Gulf Insider July 2015

them stay alive, providing an evolutionary advantage in the face of danger.

But simply shifting perspective away from the negative and embracing the positive will make you far happier than you might realise, says Dr Sood.

That’s easier said that done, he admits.

‘There are simply techniques that you need to repeat. For instance, just think, will this matter five years from now? If not then it’s not worth your time.’

The book makes readers focus on a different positive emotion each day, such as gratitude, forgiveness and kindness.

The first part of his programme is to train your mind so you can have more power over your thoughts.

Practices include doing something known as the 5-3-2 technique.

This involves making your first thought in the morning about five people that you’re grateful to have in your life.

For the first three minutes you meet your family, meet them like a long lost friend, Dr Sood advises.

And he says, for the first two second when you see another person, send a silent ‘I wish you well’.

‘When things go wrong,’ he says, ‘try to focus on what went right within what went wrong.’

The third stage of the programme is to strengthen the connection between your mind and body.

Sood encourages a range of activities designed to relax the mind including reading, exercise, music, art, prayer, meditation and yoga.

Finally, he says people should pick healthy habits, such as exercising more and eating well, and lighten up.

‘We often take life more seriously that we need to. Humor brings you into intentional presence.’

Dr Sood claims that repeating these habits for 10 weeks could be enough to change your mindset altogether.

THE FOUR STEPS TO HAPPINESS 1. Train your attention: Dr Sood recommends doing this by waking up with gratitude, being in nature, resisting judgment and expressing kindness.

2. Get emotionally tough: ‘When things go wrong,’ Dr Sood advises, ‘try to focus on what went right within what went wrong.’

3. Connect your mind and body: Activities to do this could include reading, exercise, music, art, prayer, meditation, yoga and deep breathing.

4. Pick healthy habits: The book advises doing this by simplifying your life, exercising, picking your battles and lightening up.

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Citi and Zurich have come together to provide financial solutions to help you grow and protect what matters most.

For more information, visit www.citibank.com/bahrain or call 1758 2484 (CITI).

May 2015 (E)

Zurich solutions. Citi expertise.

Citibank Terms and Conditions apply. Citibank, N.A. Bahrain is licensed by Central Bank of Bahrain as a conventional Retail Bank and is an Appointed Representative of Zurich International Life Limited.